How does Fintech add value to the bank in 2021?

The outbreak of the Covid-19 pandemic has disrupted our day-to-day lives. Even business organizations are struggling to carry out their regular operations. On the contrary, things have begun to gain momentum amidst recession due to the presence of Fintech. Some of the core areas where Fintech is advancing are as follows:–

• Digital Banks:
  • FinTech companies like Money View, Money Tap, Kreditbee, Dhani, Fullerton strengthen banks and other financial institutions by increasing the customer base as well as profits in books. The wide range of services and facilities of these FinTech companies integrated with years old trust of the banks is the perfect recipe for luring big businesses and big customer base. This provides the banks with customers of both the type, quality as well as quantity.
  • FinTech companies help the banks and financial institutions increase their customer retention rate and help choose better customers for the risk-infused schemes with sumptuous returns. Also, the presence of data enrichment tools with FinTech companies makes the task times easier for banks.
• Crypto currencies:

As per a recent survey conducted, people are switching over to crypto currencies and several digital finance tools. The value of bitcoins including Ethereum is increasing at a rapid pace and there are absolutely no signs of slowing them down. For instance, a prominent company named Tesla purchased bitcoins in bulk quantity and interest from institutional investors.

Digital banking products and Fintech had already gained momentum before the onset of the Covid-19 pandemic. Banking solutions and virtual payments would definitely take an edge in the financial service department owing to the below-mentioned factors.

• Micro services:

Micro services play a pivotal role in the advancement of the Fintech industry. The absence of micro services might hamper the capability of the industry to slow down current financial services players. A major highlight concerning Micro services is its ability to create state-of-the-art technology and ability to cope with fluctuating situations. Customized technology is included and integrated with the system to comply with the needs and requirements of a company. Monolithic systems are generated as an individual unit and the majority of the financial service entities rely on this particular system. It implies that response time to customer feedback and comments is slow. Micro services are indeed a one-stop-shop solution for the creation of independent applications and help in complying with the business requirements.

• AI (Artificial Intelligence):

Today, most of the digital marketing services make the most of the benefits from Artificial Intelligence and machine learning. Artificial Intelligence permits the corporate entities to keep track of customer behavior patterns and monitor irregularities if any. Fintech companies are now presently depending on data scalability. Fintech companies aim at integrating human skills and groundbreaking technology to render top-notch customized personal services. Artificial Intelligence is very effective in a diverse range of applications including detecting fraudulent activities, banking chatbots, and algorithmic trading. Banks could take advantage of this technology to tackle anti-money laundering and terrorism.

Conclusion

It is undoubtedly a fact that Fintech is expanding at an alarming rate and it would continue to emerge even when individuals find an alternative to the existing systems to secure their data. Despite the existing hurdles, we people are striving hard to lead a better quality of life.

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